Table of Contents
About This Report 01
Executive Message 03
Getting to Know Nanwang 05
01020304
Nanwang's Sustainable Fostering a Green Circular Collaboration for Win-Win Resilient Governance
Development Economy Pioneering Low-carbon Outcomes Co-Creation of Value Robust Operations
Initiatives
Sustainable Development Philosophy 15 Pollution Prevention and Ecological Protection 21 People-Centric Approach 37 Corporate Governance 63
Sustainable Development Management 15 Resource Utilization and Circular Economy 26 Shared Responsibility and Mutual Success 47 Business Ethics 64
Sustainability Honors & Recognitions 18 Response to Climate Change and Energy Management 31 Giving Back to Society 59 Information Security 67
Appendix 692025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
About This Report
This is the first Sustainability Report issued by Fujian Nanwang Environment Protection Scien-tech Co. Ltd. (hereinafter Reporting Standards
referred to as "Nanwang Scien-tech" "Nanwang" "the Company" or "We"). As a leading enterprise in China's eco-friendly
paper bag industry Nanwang Scien-tech has always prioritized communication and collaboration with all stakeholders. This report was prepared primarily in reference to the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen
Through this report we aim to demonstrate our core practices and key performance in Environmental Social and Govern- Stock Exchange—Sustainability Report (For Trial Implementation) (the "Guidelines") issued by Shenzhen Stock Exchange
ance (ESG) areas while addressing the concerns of all parties regarding the Company's sustainability development. and the Sustainability Reporting Standards issued by Global Reporting Initiative (GRI) while also incorporating the United
Nations Sustainable Development Goals (SDGs) framework.Reporting Scope
Access to the Report
This Sustainability Report covers the period from January 1 2025 to December 31 2025 with certain statements and key
performance indicators appropriately retroactively or proactively extended to significant years in Nanwang Scien-tech's This report is published in both Chinese and English versions available in print and electronic formats. In the event of any
development history. The report was published in April 2026 and aligns with the Company's financial reporting period. discrepancies between the Chinese and English versions the Chinese version shall prevail. The electronic version of the
report can be accessed and downloaded on the China Securities Regulatory Commission designated information disclo-
Reporting Boundary sure platform CNINFO (http://www.cninfo.com.cn) and the official website of Fujian Nanwang Environment Protection Scien-tech Co. Ltd. (https://www.nwpak.com/).Except for employee data the reporting scope of this report encompasses Fujian Nanwang Environmental Protection Scien-
tech Co. Ltd. and its subsidiaries in Chinese mainland. Feedback
Data Source If you have any queries regarding this report or would like to obtain additional information please contact us at:
The information and data presented in this report are derived from the statistical records official documents and publicly Email: zqb@nwpak.com
available materials of Nanwang Scien-tech. Unless otherwise specified all monetary values in this report are denominated Phone: 0595-36367055
in Renminbi (RMB).
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Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Executive Message
In 2025 the global industry continues to evolve amid the accelerating momentum of sustainable development. Markets Strengthening Governance Foundations: Caring for Employ-
demand greater supply chain resilience and cost efficiency while societal expectations for achieving China's "dual carbon"
goals and advancing the circular economy have become increasingly urgent. As an active player in the packaging and print- ees and Ensuring Transparent Governance
ing industry we deeply recognize that every sheet of paper every inch of film and every drop of ink carries a responsibility
to ecological environment. Below we present our explorations and practices in pursuing sustainable development over Sustainable development begins with people and is safeguarded by systems. A strong sense of employee belonging is the
the past year from three dimensions. cornerstone that unites our forward momentum and sustains long-term development; transparent governance mecha-
nisms are the fundamental guarantee for earning trust and achieving steady and long-term success.Deepening Green Operations: Beyond End-of-Pipe Solutions For employee development and care Nanwang Scien-tech is committed to fostering a workplace of "Zero Harm Shared
to Source-Level Eco-Management Growth". We implemented a company-wide occupational health and safety system and established comprehensive train-ing programs and promotion pathways. Equally important we prioritized sustainable management across our supply
Environmental protection is no longer merely a "cost burden" for enterprises but a "core asset" for future development. At chains monitoring suppliers' practices in labor rights and environmental protection and encouraging them to align with
Nanwang Scien-tech we remain steadfast in embedding sustainability into every link of the industrial chain by redesign- sustainable development principles.ing the entire production process. For corporate governance with compliant operations and integrity management at the core we reinforced the founda-
In pollutant management we have prioritized emission reduction at the source. By shifting to water-based inks where tion of stable corporate growth. We strengthened employee behavioral norms through clear codes of ethical conduct
water is the primary solvent we have significantly lowered volatile organic compound (VOC) emissions during printing and anti-fraud mechanisms and the integration of business ethics standards into operational workflows. Meanwhile regular
drying. We established a full-process waste management system covering classification temporary storage transfer and integrity training was provided to enhance company-wide compliance awareness ensuring the transparency and credi-
disposal implementing waste management through categorized storage compliant disposal and source reduction. Moreo- bility of corporate governance.ver we have actively optimized energy structure and enhanced energy efficiency to proactively address climate change.Envisioning the Future Together
Innovating Green Products: Designing for Circularity Looking ahead the true competitive edge in the packaging industry lies in green value. Driven by innovation and commit-
Packaging serves not only to protect goods but also to minimize environmental impact. From resource consumption to ted to sustainability in 2026 we'll collaborate with customers and partners to imprint every green footprint and carefully
recycling each design innovation honors Nanwang Scien-tech's commitment to sustainability. package every hope for a better future.We are transitioning packaging products from "linear consumption" to "closed-loop recycling". By utilizing sustainable We extend our heartfelt gratitude to all stakeholders for your long-standing trust and support.raw materials designing easily recyclable products and adopting resource-efficient manufacturing processes we have
provided numerous enterprise customers with innovative green packaging solutions. We continued to increase investment
in green product R&D successfully launching multiple biodegradable and recyclable packaging solutions. These efforts Chen Kaisheng
enable brand customers to achieve their own sustainability goals without compromising product appeal. Chairman of the Board Nanwang Scien-tech
April 2026
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Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Getting to Know Nanwang Corporate Culture
Fujian Nanwang Environment Protection Scien-tech Co. Ltd. established in 2010 is the first listed company in China's Committed to its mission of "Greener Packing Better World" Nanwang Scien-tech upholds a green development strategy
eco-friendly paper bag industry (sub-sector). Specializing in a full range of packaging solutions including eco-friendly and continuously drives progress in the packaging industry in pursuit of the vision of " leading the industry and becoming
paper bags food-grade paper packaging non-woven bags adhesive labels and thermal paper receipts the Company the most trusted partner of world-class brands".serves multiple Fortune Global 500 enterprises and leading industry brands while being ranked among the China's Top
100 Packaging and Printing Enterprises for seven consecutive years being recognized as one of the leading representative
of China's paper bag industry. Corporate Mission
Greener Packing Better World
2.3+7.5+1.6+
Annual output of over 2.3 Annual output of over 7.5 billion Annual output of over 1.6
billion eco-friendly paper bags food paper packaging billion non-woven bags Corporate Vision Values
Lead the industry and become
Client Dimension: Clients First Employees
the most trusted partner of
200+ 400+ 100+ Second Shareholders Thirdworld-class brands Enterprise Dimension: Respect Appre-
ciation Mutual Support Professionalism
Annual output of over 200 More than 400 sets of advanced More than 100 sets of inspection &
Efficiency Sharing
million ㎡ of labels & tickets production equipment testing equipment
Department Dimension: Never give up
until the goal is achieved
Employee Dimension: Strive with the
spirit of aiming to be the best in the world
05 062025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Development History
2010201220162018202020222024
*?Founding of *?The newly - completed *?Successfully listed on the *?Founding of the Anhui *?132+ mu of land purchased for new *?Fujian's Phase II intelligent *?Founding of Anhui Bag King Environmental
Nanwang factory building of National Equities Exchange Nanwang subsidiary plant expansion at Fujian factory and smart factory construc- Protection Technology Co. Ltd
Nanwang and Quotations tion started *?Fujian Nanwang's Phase II Intelligent Industrial
Park Eco-workshop fully operational
2011201320172019202120232025
*?The foundation - laying *?The food produc- *?100% equity acquisition of *?Acquisition of Tangshan *?Preparation to build an *?Successfully listed on the Growth *?Fujian Nanwang's Phase II
ceremony for Nanwang's tion workshop estab- Zhuhai Zhongyue Nanwang subsidiary industrial tourism park Enterprise Market in Shenzhen Stock Intelligent Industrial Park
new factory building is held lished *?Acquisition of Xianghe Exchange (Stock Code: 301355) food workshop fully opera-
Nanwang *?Founding of Fujian Nanwang New tional
*?Founding of the Malaysia Material Technology Co. Ltd *?Canadian subsidiaries in full
Nanwang subsidiary production
*?Founding of the Hubei *?Indonesian subsidiaries in full
07 Nanwang subsidiary
production
082025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Business Layout
Nanwang Scien-tech operates 5 production bases in Fujian Guangdong Anhui Hebei and Hubei provinces nationwide 5+2 Production Bases
with a total area exceeding 200000 square meters. To serve customers efficiently Nanwang Scien-tech has continuously 200000+ ㎡ Total Area
deepened its layout in overseas markets; subsidiaries have been established and commenced production in Indonesia 5 Domestic Production Bases 2 Overseas Factories
and Canada further realizing globalized production and diversified development.*?Nanwang Indonesia (Central Java)
Hebei
*?Hebei Nanwang (Langfang)
Shanghai *?Nanwang Canada (Toronto)
*?Shanghai Nanwang
(Xuhui District)
Hubei Anhui OFFICE
*?Hubei Nanwang (Wuhan) *?Anhui Nanwang (Anqing)
*?Shanghai
*?Anhui Bag King (Anqing)
Guangdong Fujian *?Beijing
*?Jiangmen
*?Guangdong Nanwang (Jiangmen) *?Nanwang Headquarters (Quanzhou)
*?Nanwang New Materials (Quanzhou) *?Jakarta Indonesia
*?Canada
09 102025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Core Products Series
Food Paper Packaging
Shopping Paper Bags Paper Boxes Paper Cups Paper Straws Paper
Serrated Top Bags Turn Top Bags Bowls Paper Buckets Wrapping Paper Paper
Handmade Luxury Bags Plates Potato Chip Cans Pinch Bottom Bags
SOS Bags Takeaway Bags
Non-woven Bags Label and Receipt
Vest Bags One-step forming Bags Adhesive Labels Thermal Paper Receipts
Sewn Bags Industrial Labels Smart Packaging RFID/NFC
111201
Nanwang's Sustainable
Development
Nanwang Scien-tech firmly believes that sustainable development is not only a demonstration of corporate social respon-
sibility but also a core strategy for driving long-term competitiveness. By deeply embedding sustainability into our business
strategy we are committed to transitioning from "green manufacturing" to "value co-creation" building a sustainable devel-
opment ecosystem across the entire packaging value chain.2025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Sustainable Development Philosophy Stakeholder Communication
Nanwang Scien-tech places great importance on the expectations and concerns of all stakeholders. We have established
Fostering a Green Circular Economy Collaboration for Win-Win Resilient Governance a regular multi-channel communication mechanism to promptly identify and respond to key issues of interest ensuring
Pioneering Low-carbon Initiatives Outcomes Co-Creation of Value Robust Operations continuous improvement in our operational practices and social responsibility performance.Circularity is embedded in our opera- With an open mindset to build We regard compliance as Stakeholder Expectations and Concerns Communication Channels
tions. We prioritize emissions reduction shared value we unite employees the foundation of our exist-
across the value chain and are commit- supply chain partners customers ence. Through continuous Shareholders and *?R&D Innovation *?Shareholders' Meetings *?Investor mailbox
ted to balancing business growth with and broader society to advance improvement of a robust Investors *?ESG Governance *?Regular reports and public
environmental stewardship. Through sustainability through collabo- governance framework and announcements
resource-efficient practices we are rative advancement building a enhanced transparency in
actively integrating our operations into value ecosystem where all stake- ESG management and infor-
the circular economy while innovat- holders thrive together. mation disclosure we ensure Government *?Environmental Management *?Disclosure of information *?Inspection and supervision
ing in packaging design to minimize the Company's long-term and Regulatory *?Water Resources *?Regular reporting and brief- *?Visits and reception
environmental impact. stable development. Bodies *?Management of Three Wastes ings
*?Occupational Health and Safety
*?Labor Rights
Sustainable Development Management Customers *?Carbon Footprint Management *?Customer visits *?Business phone calls
*?Product Quality and Safety *?Email correspondence *?Information systems
*?Information Security *?Company website *?Satisfaction surveys
Governance Structure *?Responsible Supply Chain *?Social media platforms
The Company strictly complies with all applicable laws and regulations continuously improves its sustainable develop-
ment governance structure and enhances transparency and standardization. By improving governance systems clarify- Media *?Carbon Footprint Management *?Media interviews *?Social media
ing responsibility assignments strengthening oversight mechanisms enhancing the quality of information disclosure and *?Pollutants *?Company website engagement
reinforcing internal control and risk management we are committed to continuously enhancing management efficiency *?Product Quality and Safety
and effectively preventing and mitigating governance risks.Partners & *?Sustainable Procurement *?Project procurement *?Supplier support
Sustainable Development Management Framework Suppliers *?Responsible Supply Chain *?Supplier contracts and and collaboration
Governance Board of Determines the Company's sustainable development strategy and goals; reviews and
agreements *?other supplier communi-
Level Directors approves the Company's sustainable development management system; reviews and
*?Supplier audits and cation events
approves the sustainable development report. assessments
Strategy Coordinates internal and external matters identifies material topics guides the daily Management Employees *?Compensation and Benefits *?Employee satisfaction surveys *?Employees' suggestions
Committee implementation of sustainable development initiatives and oversees the preparation Level *?Talent Development and Training *?Trade union and feedbackof the sustainable development report. *?Labor Rights
*?Health and Safety
With the Secretary of the Board of Directors leading the initiative business departments assume
Execution Sustainable their respective primary responsibilities and appoint dedicated representatives to the working
Level Development group. The group implements sustainable development tasks in accordance with the Compa- Local *?Social Contribution *?Public welfare activities *?Company website
Working Group ny's overall plan reports progress regularly and conducts information collection and report Communities *?Environmental Management
preparation for the sustainable development report.
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Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Material Topics Sustainability Honors & Recognitions
This year through benchmarking against industry peers alignment with capital market requirements and in light of exter-
nal market trends and the Company's operational characteristics we have identified 22 material topics. These topics define
the key focus areas for our sustainable development practices and sustainability information disclosures. National-level Service-oriented
National-Level 5G Factory Directory
Material Topic Identification Process Manufacturing EnterpriseAwarding Organization: Ministry of
Awarding Organization: Ministry of
Industry and Information Technology
Industry and Information Technology
Topic Based on relevant standards and requirements we systematically review the Company's
Identification ESG practices and identify key ESG topics through industry benchmarking.
2024 Top 100 Packaging Fujian Province Green Factory
Enterprises in China Awarding Organization: Fujian
Screening We conduct a materiality analysis and assessment of the identified topics by integrat- Awarding Organization: China Provincial Department of Industry and
and ing professional insights from external consultants stakeholder concerns and regula-
Assessment Packaging Federation Information Technologytory requirements.Review and The Strategy Committee reviews and confirms the assessment results. The finalized list
Finalization of material topics and recommendations is then submitted to the Board of Directors for 2025 Top 100 Chinese Printing and
final review and determination. 2024 Outstanding SupplierPackaging Enterprises Ranking
Awarding Organization: Pobeice
Awarding Organization: Printing Manager
Nanwang Scien-tech 2025 ESG Materiality Topics
Xiao Guan Tea's Most Promising Supplier McDonald's China FSQ Excellence
High Importance Medium Importance General Importance of 2024 Leadership A-Level Supplier
Awarding Organization: Xiao Guan Tea Awarding Organization: McDonald
Waste Management Environmental Wastewater Management Management Noise Management
Circular Economy Waste Gas Packaging Technology Innovation
Management Energy Management Water Resources McDonald's AA Quality Award Award
Carbon Footprint Awarding Organization: McDonald Awarding Organization: Hongkong New
Management Labor Rights Compensation and Benefits Social Contribution
Msuccess Media Group Limited
Health and Safety
Talent Development
and Training R&D Innovation
Product Quality and Safety
Responsible Packaging Enterprises Selected for the 2024 Annual ListESG Governance
Customer Service Supply Chain Awarding Organization: Meituan Catering Delivery Green Packaging Application Working Group
Business Ethics Information Security Intellectual Property Protection
171802
Fostering a Green Circular Economy
Pioneering Low-carbon Initiatives
Material Topics Addressed
Waste Management | Circular Economy | Carbon Footprint Management
Environmental Management | Waste Gas Management
Wastewater Management | Energy Management
Our Concept Noise Management | Water Resources
Nanwang Scien-tech attaches great importance to the environmental impact in the process of corporate development.Upholding the philosophy of "building a resource-recycling and environmentally friendly production system" we contin- Responded SDGs
uously reduce our ecological footprint actively invest in the research and development of green products and explore
low-carbon development pathways to address climate change and build competitive advantages through corporate green
development.2025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Pollution Prevention and Ecological Protection Environmental emergency management
The Company has established a comprehensive emergency management system for sudden environmental incidents
Nanwang Scien-tech consistently places environmental protection at a critical position in corporate development commit- encompassing institutional documents such as the Emergency Plan for Sudden Environmental Incidents and the Environ-
ted to promoting a harmonious coexistence between business operations and the natural environment. Adhering to the mental Emergency Preparedness and Response Control Procedures which systematically regulate the prevention response
whole-process management concept of "source prevention process control resource recycling and continuous improve- and disposal processes of such incidents.ment" we start from every link in production and manufacturing. Through sci-tech innovation and management optimiza- An Emergency Command Center has been established to strengthen the overall coordination capabilities of emergency
tion we build a modern operational model that is resource-efficient and environmentally friendly. management. This ensures that the emergency response mechanism can be rapidly activated upon the occurrence of an
incident effectively controlling the situation's development and preventing soil water resource or air pollution caused
Environmental Management by sudden environmental incidents. Regular simulation drills covering multiple scenarios including chemical leaks and
secondary pollution from fires are conducted to verify the scientific validity of the plans and the efficiency of team collab-
The Company strictly complies with national laws such as the Ecological and Environmental Code of the People's Repub- oration. Corresponding processes are continuously optimized based on the results of these drills.lic of China as well as relevant environmental regulations in all operating locations. We have established an environmental
management system to standardize the control and management of various environmental pollutants. In the planning stage
of new renovation and expansion projects all manufacturing factories strictly implement environmental impact assessment
procedures. These assessments comprehensively evaluate environmental factors such as atmospheric pollutant emissions Case: Emergency Drill for Water-Based Adhesive Leakage
and wastewater treatment to prevent any adverse impacts on the environment. During the reporting period the Company did
not incur any violations in the environmental field or receive any major administrative penalties due to environmental issues. The Company organized and conducted an emergency drill for water-
The Company has established a cross-departmental collaborative management mechanism. Specifically the Environmen- based adhesive leakage simulating a leakage incident during transpor-
tal Safety Department oversees environmental monitoring and compliant emissions the Equipment Department is respon- tation. During the drill operation the Company promptly activated the
sible for the construction and maintenance of environmental protection facilities and the Quality Department supervises emergency response mechanism. Relevant personnel timely completed
and inspects environmental aspects during production. Together they ensure that the Company's operations do not cause on-site isolation adsorption and cleanup actions successfully contain-
significant negative environmental impacts. In terms of policy formulation the Company has formulated and constantly ing the leakage. This effectively verified and enhanced emergency
updated internal documents such as the Wastewater Management Procedure the Waste Gas Management Procedure the coordination and response capabilities while providing clear direc-
Solid Waste Control Procedure and the Noise Management Procedure clarifying the management and control require- tions for improvement in subsequent emergency plan refinement and
ments for environmental pollutants. practical training. On-site emergency drill for
water-based adhesive leakage
Key Performance
Case: Emergency Drill for Waste Oil Dumping
As of December 31 2025
the Company's Fujian Factory has obtained ISO 14001 Environmental The Company organized and conducted an emergency drill for waste motor oil leakage. The scenario simulated a leakage incident caused by
Management System certification. container damage during the transfer of drummed waste motor oil by
employees. Upon occurrence of the incident on-site personnel immedi-
ately activated the emergency response mechanism. The emergency
During the reporting period rescue team donned protective equipment in accordance with regula-
tions and arrived at the site with emergency supplies. Pollution control
was achieved through containment and isolation using adsorbent
materials standardized collection of hazardous waste and professional
Pollutant emissions Waste gas monitoring Waste classification Hazardous waste disposal Percentage of employ- cleaning operations. This drill effectively verified the operational feasi-
bility of the emergency plan and further enhanced the practical aware-
compliance rate compliance rate implementation rate compliance rate ees trained on specific On-site emergency drill
environmental issues ness and proficiency of the rescue team in handling emergencies. for waste oil dumping
100%100%100%100%100%
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Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Wastewater Management
*?Recyclable waste: Regularly collected and recycled by licensed waste disposal contractors.Wastewater generated from the Company's operations primarily consists of industrial sewage and domestic sewage neither
Disposal *?Non-recyclable waste: Handled as municipal solid waste by qualified sanitation units.of which contains Adsorbable Organic Halogens (AOX). Specifically industrial sewage is collected via the sewage pipeline *?Hazardous/Toxic waste: Entrusted to entities holding hazardous waste operation licenses for trans-
network and directed to the wastewater treatment station and discharge into the stormwater drainage network is strictly portation to compliant treatment facilities for safe treatment.prohibited. The treatment process rigorously adheres to the Integrated Wastewater Discharge Standard and local require-
ments. Furthermore we conduct regular joint monitoring with environmental protection authorities to ensure stable and
compliant water quality. For domestic sewage treatment canteen wastewater undergoes pre-treatment such as grease *?Source reduction: The intelligent three-dimensional warehouse system interfaces with the Manufac-
separation and filtration. Subsequently it is discharged into the municipal sewage network along with other domestic sewage turing Execution System (MES) and Automated Guided Vehicles (AGVs) to enable automatic coding
treated in septic tanks. The separated grease and residues are transferred to livestock breeders for resource utilization. for raw material storage and precise distribution reducing waste generation during material storage
and transportation.Waste Gas Management *?Process control: Employ an automatic tension control system to reduce paper loss; optimize die-cut-Reduction ting and layout processes to enhance paper utilization; apply high-precision metering pumps
The printing and ink blending processes in the Company's production generate volatile organic compounds (VOCs). The and servo drive technology for precise dispensing minimizing waste generation from paper and
waste gas is collected by hood systems transported via pipelines to the rooftop and subjected to end-of-pipe purifica- adhesives.tion using UV photolysis technology. To control VOC emissions the Company utilizes water-based inks where water is the *?Resource utilization: Paper scraps and trimmings are automatically suctioned to a compression
primary solvent. Compared to traditional inks this approach can reduce VOC emissions from the source during printing room via enclosed pipelines without contact with the ground. After hydraulic baling the material
and drying processes caused by the volatilization of organic solvents. Additionally the Company regularly engages quali- is transported externally to be recycled for resource recovery.fied third-party agencies to test waste gas emissions ensuring the stable operation of treatment facilities and compliance
with emission standards.During the reporting period Case: Training on Standardized Management of Hazardous Waste
To further enhance practical capabilities in risk identifi-
cation and emergency response for hazardous waste the
19.5 thousand tonnes 18.6 thousand tonnes 11.57 tonnes Company organized a special training program on compli-ant waste management. The training focused on the charac-
Total wastewater generated Total wastewater discharged Total VOCs emissions teristic identification of hazardous waste classification
standards and compliant disposal procedures. It provided
an in-depth analysis of the differences between hazard-
ous waste and general solid waste regarding management
systems disposal technologies and environmental risks
Waste Management while further clarifying the management responsibilities On-site training for hazardous
and coordination mechanisms of each department. waste management
Solid waste generated from the Company's operations includes hazardous waste (e.g. empty chemical containers laboratory
waste liquids waste mineral oils oily waste rags) recyclable waste (e.g. wastepaper beverage bottles scrap metal) and non-re-
cyclable waste (e.g. tea leaves fruit peels). For the aforementioned waste we have established a full-process management
system for waste classification temporary storage transfer and disposal implementing waste management through three key
aspects: classified storage compliant disposal and source reduction.*?Classification: Classify and label waste based on attributes such as recyclability treatment methods
Classification storage conditions and odor emission.and Storage *?Storage: Designate dedicated storage areas meeting environmental standards and regulatory
requirements. Waste is stored in containers categorized as recyclable non-recyclable and hazard-
ous/toxic as required.
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Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Nanwang Scien-tech 2025 Waste Data Resource Utilization and Circular Economy
Hazardous waste Nanwang Scien-tech places high importance on the efficient use of resources and actively supports the development of a
circular economy. We adhere to the "4R1D" principles (Reduce Reuse Regenerate Recycle Degrade) to drive the transi-
tion of packaging products from a "linear consumption" model to a "closed-loop cycle" by utilizing sustainable raw materi-
Total hazardous waste generated tonnes 25.99 als employing easily recyclable product designs and implementing resource-efficient production methods.Sustainable Raw Materials
Total recycled hazardous waste tonnes 6.39
Sustainable materials exhibit a significantly lower environmental footprint throughout their entire life cycle. Their applica-
tion serves as a crucial pathway for companies to reduce environmental impact and practice resource circularity. Common
Total hazardous waste treated (for disposal) tonnes 19.69 types include FSC-certified paper low-pollution adhesives and inks as well as biodegradable materials. In selecting raw
materials we prioritize environmentally friendly options. Without compromising product performance we use FSC-certi-
Non-hazardous waste fied base paper as a primary material to avoid impacting virgin forest resources and widely apply recycled kraft paper in
products like eco-friendly shopping bags. For inks we employ water-based inks using water as the dispersing medium to
avoid VOC emissions at the source. For functional coatings we select environmentally friendly materials such as biode-
Total non-hazardous waste generated tonnes 11469.68 gradable bio-waxes to ensure that products can return to the environment more naturally after disposal thus reducing
long-term ecological burdens. By selecting these sustainable raw materials we inject the positive benefits of resource
conservation and reduced environmental impact from the very beginning of a product's lifecycle.Total recycled non-hazardous waste tonnes 10734.92
Total non-hazardous waste treated (for disposal) tonnes 734.76
Noise Management
The Company strictly adheres to national environmental noise emission standards and has established the Noise Manage-
ment Procedure to construct a comprehensive control system covering source control propagation blocking and contin-
uous monitoring. At the production site high-performance noise-canceling earplugs are provided to employees the
operating hours of auxiliary equipment are strictly controlled and technical upgrades are implemented for key noise-gen-
erating equipment such as printing machines. High-noise fans have been replaced with low-noise energy-efficient variable
frequency drives to reduce noise generation at the source. Simultaneously enclosed workshop designs and professional
window sealing measures are adopted to effectively block noise propagation to the external environment. For new recon-
structed or expanded projects noise environmental impact assessments are required to be conducted concurrently during
the planning phase accompanied by targeted prevention and control plans.The Company has established a sound noise monitoring and supervision mechanism. Regular inspections of noise-gen-
erating equipment are conducted and quarterly noise monitoring is implemented in collaboration with professional
environmental testing agencies. Fixed monitoring points are deployed at the factory boundary and surrounding areas to
continuously track noise emission levels. All historical monitoring data indicate that noise values at all monitoring points
are significantly below the limits prescribed by national regulations and no adverse noise impact on surrounding commu-
nities has been observed.
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Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Key Performance Green Design
As of December 31 2025 Green design helps enhance product recyclability and reduce resource consumption from the source. Guided by the concept
of green design we achieve systematic reduction in the use of materials such as paper and ink integrate recycling conven-
a total of 5 factories have obtained the Forest Stewardship Council Chain ience into the front-end of design and actively promote green packaging solutions that substitute paper for plastic creat-
of Custody (FSC-COC) certification. ing favorable conditions for the closed-loop recycling of packaging materials.We optimize equipment configuration and processes to avoid raw material waste during production and reduce the usage
of materials such as adhesives and inks. By minimizing the application of composite materials products are primarily
During the reporting period composed of a single type of recyclable material. This simplifies backend sorting and recycling processes thereby improv-
ing resource recovery efficiency. Additionally we print clear recycling labels on products that meet recycling standards
proactively guiding consumers towards correct waste sorting and jointly facilitating the entry of packaging waste into an
14 14 efficient recycling system. This series of design-oriented measures helps ensure that products after fulfilling their intended thousand tonnes % use can be reintegrated into the resource cycle to the greatest extent possible avoiding disposal via landfill or incinera-
Usage of regenerated kraft paper Proportion of regenerated kraft paper tion. This forms a complete environmental protection loop from design to end-of-life.The application of biode-
gradable materials covers
Key Performance21 thousand tonnes 22 % 100 % of products
Usage of FSC-certified base paper Proportion of FSC-certified base paper As of December 31 2025
the Company's Fujian Factory Guangdong Zhongyue subsidiary* and
1745 81 The application of recycled tonnes % Hubei subsidiary have been certified with the BRC Global Standard for materials covers Packaging Materials.
Usage of eco-friendly adhesives Proportion of eco-friendly adhesives 20 % of products
* The Guangdong Zhongyue subsidiary formerly known as Zhuhai Zhongyue Paper Cup
2874 Container Co. Ltd. was renamed Guangdong Zhongyue Food Packaging Co. Ltd. in April 2026.tonnes 90 %
Usage of eco-friendly ink Proportion of eco-friendly water-based flexo ink
Data scope: Paper-based packaging products only Case: Paper-for-Plastic Design – E-commerce Logistics Paper Packaging Bags
Nanwang actively responds to global circular economy trends and environ-
mental policies. Addressing the industry pain points of express packaging
Case: Innovation in Eco-friendly Coatings – PHA Bio-based Coating Technology pollution and resource waste the Company launched new express paper
bags made from eco-friendly materials (such as kraft paper and recycled
In pursuit of an ultimate solution with a smaller environmental footprint and the ability to degrade safely in the paper) that are biodegradable and recyclable which can directly replace
natural environment the Company initiated a research and development project for Polyhydroxyalkanoates (PHA) traditional plastic express bags.bio-based coating technology. Sourced from renewable resources PHA can degrade in natural environments such Relying on sustainable design this product won the "Reuse and Recycling
as soil and oceans without requiring industrial composting overcoming the dependency of existing biodegrad- Scheme Award - Bronze Prize" in the "Blue Planet" Sustainable Packaging
able materials on end-of-life treatment facilities. Currently the project has successfully produced the first batch Awards at the IPIF 2024 International Packaging Innovation Forum demon-
of commercially sized pilot paper cup products. The coating demonstrates excellent performance in printability strating the Company's innovation capability in green transformation of
pattern adhesion and other aspects and is compatible with existing production processes. The next step involves packaging.continuously optimizing its key performance attributes such as heat resistance and grease resistance to steadily Reuse and Recycling Scheme
advance this cutting-edge technology towards market application. Award
27 282025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Case: Green Recycling Design – New Eco-friendly Coated Paper Cup Resource Recycling and Utilization
In water resources management Nanwang Scien-tech strictly complies with laws and regulations such as the Water Law
To address the recycling dilemma of traditional polyethylene (PE)-lam- of the People's Republic of China and has established a water resources management system to ensure compliant and
inated paper cups where plastic is difficult to separate from paper efficient use of water resources and wastewater treatment in production and operations. The Company's water usage scenar-
fibers the Company has independently developed a new eco-friendly ios include domestic water for employees and cleaning processes in production with all water sourced from municipal
coated paper cup. This product abandons fossil-based plastic lamina- supply. The total water consumption for 2025 was approximately 15.39 thousand tonnes with 840 tonnes of water recov-
tion and adopts a new type of coating that is easily separable from ered and reused. In daily management we have established a monthly meter reading and data collection mechanism to
paper fibers. This allows the used paper cup to seamlessly enter the ensure the accuracy and traceability of water usage data.wastepaper recycling system reducing plastic use at the source and In terms of management of production materials the Company has established a comprehensive internal resource recycling
enhancing recyclability. The coating also offers excellent water resist- mechanism embedding the philosophy of resource conservation throughout the product production phase. We imple-
ance oil resistance and heat resistance and is free from harmful New "coated paper cup" ment closed-loop management for waste ink generated during production. For dormant inventory and trial-use adhesives
substances such as per- and polyfluoroalkyl substances (PFAS) we apply them to non-critical processes tooling and trial production stages provided this does not compromise product
ensuring both user experience and health and safety. This technology is now maturely applied for domestic and quality and safety thereby avoiding direct scraping of materials and effectively reducing procurement demand and disposal
international customers effectively advancing "paper-plastic" composite packaging towards a circular closed loop. costs. These measures enhance resource utilization efficiency and drive the manufacturing process towards a more inten-
sive and green direction.We also systematically implement waste paper recycling management throughout the production and operation process.Dedicated waste paper collection rooms are established in each production area complemented by a pipeline suction
Case: Green Solution –Replacement Project for Garment Plastic Inner Bags collection system to centrally gather production offcuts. These materials are then entrusted to professional waste paper
recycling enterprises for on-site compression and baling followed by transportation to third-party specialized regenerated
paper manufacturing facilities. Through pulping and dewatering processes resource-based regeneration and utilization
Addressing the environmental issues prevalent in the garment industry where transparent PE plastic inner bags are are achieved. This circular disposal model effectively facilitates the conversion path from production waste to regener-
commonly used leading to imperfect recycling systems and most ending up incinerated the Company has devel- ated resources. While reducing the generation volume and disposal costs of solid waste it significantly decreases resource
oped an eco-friendly garment inner bag. It selects high-transparency environmentally friendly paper formed into consumption and environmental burden continuously promoting the construction of a green production system.a three-side-seal structure using specialized equipment providing a viable alternative to traditional plastic inner
bags. This solution not only enhances the packaging's visual and tactile quality but also aligns with international
environmental trends. It offers a new green packaging choice for numerous garment exporters helping custom- Case: On-site Resource Utilization of Waste – Eco-friendly Cup Trays
ers reduce their carbon footprint enhance their sustainable brand image and drive the supply chain towards
low-carbon and circular development. In response to core customers such as beverage tea chains demanding upgrades
in environmentally friendly packaging the Company has initiated a wastepaper
recycling project based on scraps generated from its existing paper bag business.We transform production leftovers such as laminated paper and greaseproof
cardboard into eco-friendly cup trays via resource recovery technology serving
as substitutes for traditional plastic products. This not only achieves high-value
utilization of production waste but also reduces the overall packaging carbon
footprint through product lightweighting design and recyclability optimization
assisting customers in reaching their sustainable supply chain goals. Currently
the Company has completed evaluations of intelligent equipment suppliers and
plans to collaborate on developing a fully automated production line integrating
pulping forming drying and hot-pressing processes. This aims to further enhance
production efficiency reduce energy consumption and production losses and
press ahead with the scaled implementation of a circular economy model. Eco-friendly Cup Tray
Garment lining paper bag
29 302025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Response to Climate Change and Energy Management Incentive System for Manufacturing Department it has established a specialized incentive mechanism encouraging all employees to propose technological renovation and optimization suggestions for production equipment and processes. In
2025 the manufacturing department collected and implemented 57 improvement proposals and 9 rationalization sugges-
As the significance of climate issues continues to grow Nanwang Scien-tech has integrated them into its operational tions from employees resulting in a series of practical and valuable energy-saving renovation projects and cases. This not
management framework. By optimizing the energy structure enhancing energy efficiency and implementing manage- only effectively improved the efficiency of solving on-site problems but also fostered a lean production culture of contin-
ment and control over greenhouse gas (GHG) emissions the Company proactively addresses climate-related challenges uous improvement and company-wide participation.and opportunities. It is committed to driving the low-carbon transition of its operations and building a more resilient devel- Energy-saving Renovation Projects
opment model.Energy Management Renovation Project Renovation Measures
Nanwang Scien-tech places high importance on energy management strictly adhering to national laws and regulations
such as the Energy Law of the People's Republic of China. Guided by the ISO 50001 standard the Company has established Segmented pressure To enhance energy utilization efficiency and prevent waste of energy quality as well
transformation of as unnecessary losses the original single-pressure air supply pipeline network was
a full-process energy management system covering planning production usage monitoring analysis and optimization. compressed air retrofitted into independent high and low-pressure systems achieving annual energy
It aims to reduce energy consumption and emissions through technological and managerial improvements. pipeline network savings of over 15%.Key Performance
To address the issue in the paper cup workshop where waste heat in production
Fresh air recircula- processes necessitated cooling even in winter low-temperature outdoor fresh air
As of December 31 2025 tion renovation for air is introduced during autumn and winter while maintaining slight positive pressure controlling the workshop temperature between 15-20°C. Following the commissioning
the Company's Fujian Factory was recognized as a "Fujian Provincial conditioning systems of this system the hourly electricity consumption of the refrigeration host decreased
Green Factory". from 415 kWh to 46 kWh representing a reduction of approximately 88.9%.To address energy waste caused by the main fan of the original exhaust gas system
Renovation of printing operating continuously at full load automatic dampers linked to the equipment were
The Company's energy consumption primarily comprises electricity and natural gas. Electricity is mainly used to power exhaust gas emission installed on the exhaust branch pipes of each printing machine. Centralized control
central air conditioning systems compressed air systems printing presses and other production equipment while natural system enables automatic damper closure when equipment is shut down reducing opera-
gas is primarily used in scenarios such as printing drying and kitchen operations. To enhance the intelligence and precision tional air resistance and energy consumption of such system.of energy management the Company has deployed a "Master-Division-Branch" Three-Level Integrated Power Automation
Configuration Software Platform establishing an efficient and open energy management system. This system supports
multi-protocol device access and interconnection with third-party systems. It features real-time monitoring load analysis
report generation and fault diagnosis enabling daily monitoring and in-depth analysis of major energy-consuming units. Case: Waste Heat Recovery and Comprehensive Utilization Project
As of 2025 this platform has been implemented at the Fujian Factory with plans to further increase its coverage across To enhance the cyclic utilization rate of energy the Company implemented a waste heat recovery and comprehen-
factories in the future. sive utilization project converting high-temperature waste heat generated by the compressed air system into usable
energy. The project adopts a process characterized by "waste heat recovery + heat pump upgrading". Specifically
Enhancement of energy efficiency heat exchangers are installed to recover and store the waste heat and the recovered hot water is then transported via
insulated pipelines to production workshops and dormitory buildings for daily heating needs. Additionally the system
To systematically improve energy use efficiency and reduce operational carbon emissions the Company continuously utilizes heat pumps to elevate the temperature of low-temperature hot water to above 75°C making it directly applica-
identifies and implements multiple technological renovation and optimization projects targeting high-energy-consumption ble for processes with higher heat source quality requirements such as printing drying thereby achieving the efficient
systems. Through refined management and equipment innovation it aims to reduce energy consumption while meeting cascaded utilization of energy.production demands. The implementation of this project enables the annual recovery of 1128.6 thousand gigajoules of waste heat (equiv-
The Company places high emphasis on stimulating internal innovation. By formulating the Employee Promotion and alent to 705.83 tonnes of standard coal) resulting in an annual carbon dioxide reduction of 775 tonnes (equivalent to
the carbon sink effect of planting 1059 trees). It also meets the hot water demands of 162 employee dormitory rooms
creating significant environmental and social benefits.
31 322025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Transition of energy structure Carbon Footprint Management
The Company is systematically advancing photovoltaic (PV) energy construction to enhance the proportion of clean energy GHG emissions accounting
within its overall energy consumption structure. Currently distributed photovoltaic systems have been installed across
three production facilities in Fujian and Jiangmen covering 65% of rooftops. The photovoltaic system at the Fujian South The increase in greenhouse gas concentrations is the primary driver of global warming. Against this backdrop the Company
Factory has been completed and commissioned with an annual power generation capacity of no less than 1.92 million actively initiated carbon emission inventory work. Regarding emissions from our own operations we calculated the key
kWh accounting for 10% of the total annual electricity consumption of that Factory. According to the plan upon full grid energy consumption and emission levels at the Group headquarters and all subsidiary production bases completing the
connection of the photovoltaic systems at both the North and South Fujian Factory the estimated annual power genera- statistical reporting of Scope 1 and Scope 2 greenhouse gas emissions.tion will be no less than 8.32 million kWh representing 40% of the total regional electricity consumption; upon grid connec-
tion of the Jiangmen facility the estimated annual power generation will be no less than 4.50 million kWh accounting for In terms of product carbon footprint we have collaborated with the Beijing Institute of Graphic Communication to conduct
64% of the total electricity consumption of that facility. research on the carbon footprint of packaging and printing products as well as carbon emissions in printing and process-
ing stages. The product carbon footprints of three items have been calculated: the toothed round-handle square-bottom
takeaway bag the toothed round-handle square-bottom double-cup bag and the hamburger paper box. By quantify-
Renewable Energy Target ing and comparing the environmental impacts of different printing products and processes we have identified carbon
emission hotspots throughout the product life cycle. This provides data support for the selection of low-carbon technolo-
2025 Target 2025 Actual 2026 Target gies production optimization and the development of green products.
9.5%11%40%
Nanwang Scien-tech 2025 Greenhouse Gas Emission Inventory
We are simultaneously advancing the electrification of internal logistics processes by introducing clean energy equip-
ment such as Automated Guided Vehicles (AGVs) and electric forklifts to gradually replace traditional diesel-powered
handling equipment. This initiative enhances logistics efficiency while effectively reducing fossil fuel consumption and Scope 1 emissions tCO2e 460.63
on-site tailpipe emissions.Scope 2 emissions (location-based) tCO2e 57718.03
Scope 2 emissions (market-based) tCO2e 66311.55
AGV equipment
333403
Collaboration for Win-Win Outcomes
Co-Creation of Value
Material Topics Addressed
Labor Rights | Talent Development and Training | Compensation and Benefits
Health and Safety | Product Quality and Safety | Responsible Supply Chain
Our Concept Intellectual Property Protection | R&D Innovation | Customer Service | Social Contribution
Nanwang Scien-tech comprehensively integrates the concept of sustainable development into its operations collaborat-
ing with employees partners and communities to co-create value. We systematically advance value co-creation with all Responded SDGs
stakeholders by fostering a diverse and inclusive workplace promoting the green transition of value chain and fulfilling
corporate social responsibilities. This approach aims to enhance overall resilience and promote sustainable development.2025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
People-Centric Approach Prohibition of child labor and forced labor
The Company strictly prohibits the employment of child labor in any form and clearly defines standards for legal working
Nanwang Scien-tech is committed to building a corporate culture of diversity equality and inclusiveness earnestly age. We have also established a coordination mechanism with local public security authorities to conduct rigorous verifi-
safeguarding employees' legitimate rights and interests and providing comprehensive support for their long-term career cation of applicant information to effectively prevent and eliminate incidents of child labor.development. The Company has established multi-level unobstructed communication channels and continuously improves
the occupational health and safety management system fostering a safe healthy and harmonious working environment. The Company is committed to building an employment environment free from forced or compulsory labor strictly imple-
menting a non-compulsory work system and explicitly prohibiting any form of forced labor within the Company. Employees
Diversity Equality and Care can report instances of forced labor via established grievance channels. Upon receiving a report employee representa-
tives complete a factual investigation within seven working days and in collaboration with management hold consulta-
The Company strictly complies with the Labor Contract Law of the People's Republic of China and the Law of the People's tion meetings to develop solutions. During the reporting period no incidents involving child labor or forced labor occurred.Republic of China on Protection of Minors. It has formulated the Recruitment Management System to standardize recruit-
ment management processes. Each department determines talent requirements based on its business development plans. Anti-discrimination and anti-harassment
The Human Resources Department attracts outstanding talent through various channels including social recruitment
campus recruitment and third-party headhunters to strengthen the Company's talent echelon development. The Company firmly opposes any form of discrimination including but not limited to discrimination based on gender
age or race. We are committed to treating all employees with equality fairness and respect. In the recruitment process
Workforce diversity the Company has established a competency-based screening mechanism oriented towards job requirements objectively
evaluating candidates' professional skills vocational qualities and health qualifications without setting discriminatory
The Company is committed to building a diverse and broadly representative workforce. Our employees demonstrate exten- conditions or requirements in recruitment criteria or processes. Simultaneously the Company has established reporting
sive diversity in gender age educational background and professional skills fostering profound cross-cultural exchange channels to support employees in reporting discriminatory conduct. In addition the Company actively recruits employ-
and comprehensive integration. ees with disabilities and provides them with corresponding job subsidies and more comprehensive accessible facilities.During the reporting period the Company saw no incidents related to discrimination or harassment.Nanwang Scien-tech 2025 Employee Composition
Number of Employees by Gender (Person)
1726
Male
Female 1161
648 346 Number of Employees by Age Group (Person)
925 30 years old and below 41-50 years old
968 31-40 years old Over 50 years old
Number of Employees by Region (Person)
Chinese Mainland 291
Overseas
2596
37 382025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Employee care Compensation Benefits and Communication
Upholding a people-oriented philosophy the Company carries out diverse care activities. We focus on employees' physi- Nanwang Scien-tech strictly adheres to laws and regulations such as the Labor Law of the People's Republic of China the
cal and mental well-being highlighting family care and life support. We organize events such as family open days cultural Trade Union Law of the People's Republic of China and the Special Provisions on the Labor Protection for Female Employ-
and sports competitions and International Women's Day celebrations to enhance employees' sense of belonging and ees. We have established a systematic mechanism to safeguard employee rights and interests. By formulating internal
team cohesion. policies including the Human Rights Procedure Document the Compensation Management Manual the Leave Manage-
ment Policy and the Worker Congress System of Fujian Nanwang Environment Protection Sci-tech Co. Ltd. we have estab-
lished an employment management system encompassing compensation and benefits working hours and leave and
performance appraisal ensuring the legitimate rights and interests of all employees.Compensation and benefits management
The Company adheres to the principles of fairness competitiveness and motivation building a scientific and comprehen-
sive compensation and benefits system. Our compensation strategy is based on position value dynamically formulated
in light of market levels and employee capabilities and ensures competitiveness through a regular salary review mecha-
nism. The Company conducts periodic compensation surveys and ensures that compensation for key positions remains
stable at the 75th percentile of the market by utilizing third-party compensation reports benchmarking against regional
and industry peers and analyzing recruitment difficulty factors. Furthermore the Company strictly implements a policy
of equal pay for equal work providing uniform compensation and benefits to employees in the same position performing
equal work with equivalent performance to ensure fairness in distribution.Regarding compensation structure the Company has established a diversified remuneration system. Employee income
comprises base salary position allowance confidentiality allowance performance-based pay overtime pay specific subsi-
dies (including communication high-temperature meal and disability allowances) and an annual bonus comprehensively
reflecting position value and individual contribution. In addition to base compensation we have established specialized
incentive mechanisms such as project bonuses technological innovation awards and sales commissions complemented
by an equity incentive plan to strengthen the alignment of interests between core talent and the Company's long-term
development. To enhance our commitment to ensuring transparency in compensation management the Company has
Women's Day care activity at Nanwang Scien-tech in 2025 established a detailed compensation disclosure mechanism and provided clear compensation breakdowns to all employ-
ees. For specific roles with performance-linked characteristics such as sales positions we additionally provided detailed
breakdowns for verification to effectively safeguard employees' right to know and ensure equity in their rights.Regarding the benefits system the Company contributes to social insurance schemes such as medical insurance for employ-
ees in accordance with the law supplemented by commercial insurance thereby constructing a multi-tiered health protec-
tion network. Regarding the leave policy the Company strictly implements statutory leave requirements including paid
annual leave and sick leave. For expatriate staff the Company provides home visit leave along with relevant subsidies and
has introduced a flexible compensatory time-off mechanism to support employees in achieving a balance between work
and personal life. Additionally the Company regularly organizes non-monetary care initiatives such as employee health
check-ups and recreational activities focusing on employee health and fostering a sense of belonging within the organi-
zational atmosphere.Regarding working hour management the Company has implemented an electronic attendance system. While stand-
ardizing working hour controls the Company maintains a reasonable degree of flexibility to effectively manage working
Family Day activity at Nanwang Sports activity at Nanwang hours while preserving necessary adaptability.Regarding overtime arrangements the Company adheres to the principle of
Scien-tech in 2025 Scien-tech in 2025 prioritizing compensatory time off and pays overtime compensation in accordance with relevant regulations to safeguard
employees' legitimate rights and interests.
39 402025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Employee communication employee volunteer applications internal recommendations or special appointments and must complete trial lectures
evaluations and qualification certification. Certified trainers are responsible for course development and instructional
guidance to collectively enhance the Company's overall training quality. Furthermore the Company actively integrates
The Company values employee opinions and needs. A labor union has been legally established with employee represent- internal and external resources by introducing professional external institutions to provide academic support. Employees
atives elected through democratic processes. The Company regularly convenes Workers' Congress exercising its powers are encouraged to pursue skill enhancement and academic advancement with subsidies provided for those who obtain
in accordance with the law to deliberate on major corporate decisions supervise administrative leadership and decide job-related qualifications or professional certifications.on collective welfare matters. This fully leverages the union's role as a bridge between the Company and its employees.We establish annual talent development plans and based on job categories and organizational levels design and imple-
The Company continuously improves its employee communication and feedback mechanisms establishing multiple ment a series of differentiated competency-based training programs to strategically align with the distinct growth needs
channels for communication and grievance including DingTalk physical suggestion boxes and executive email. This of diverse employee cohorts.ensures the accessibility and effectiveness of employee expression. In response to employee feedback the Company imple-
ments a tiered response mechanism adhering to the principle of "handling minor matters promptly and reporting impor-
tant matters specially with written reports". This approach ensures proper handling of various feedback items forming a
closed-loop management system that effectively addresses employee concerns. We adopt a blended learning approach combining "off-the-job training with on-the-job
training" requiring new employees to complete and pass the off-the-job phase covering
During the reporting period the Company conducted a satisfaction survey covering all employees. Utilizing a combina-
Company culture and policies safety and quality management compliance and audit
tion of stratified sampling and customized questionnaires the survey conducted quantitative assessments across core New Employee standards and other general courses before advancing to the on-the-job practice stage.dimensions including corporate development corporate culture compensation and benefits working environment and Orientation The on-the-job component focuses on role-specific competencies integrating job respon-
company management. The Company uses the survey data as a crucial basis for management improvement formulat- sibilities business processes field operations and system operation protocols. For staff-
ing targeted optimization plans incorporated into its 2026 special plan for enhancement of organizational effectiveness to level new employees targeted training programs emphasize corporate culture regulatory
continuously promote the synergistic optimization of employee experience and management system. frameworks and internal policies and technical skill development
2025 employee satisfaction survey results
Through systematic job rotation phased assessments and final placement this program
Frontline employee satisfaction rate reached 84.8% an increase of 8.92% from 2024 Management Trainee helps fresh graduates fully integrate into the Company and grow rapidly. Each trainee is
Program assigned a senior mentor to provide continuous guidance and support enabling them to
Employee satisfaction rate for staff and above reached 81.12% an increase of 3.81% from 2024 quickly adapt to their roles and meet the Company's future development needs.Training and Development Production Reserve Through 1 to 3 years of structured training and job rotation this program focuses on
Cadre Development enhancing trainees' capabilities in production technology problem-solving and compre-
The Company places a strong emphasis on employee development and is committed to building systematic career Program hensive management laying the foundation for them to become the core strength in
advancement pathways and a structured training framework. By providing continuous learning resources and develop- production management.mental support we empower employees to achieve growth while fostering collective progress between individuals and
the organization.Case: Nanwang Scien-tech's Business Growth Training Program
Competency training
We designed and implemented a 6-day systematic training program titled "From Manager to Business Leader"
Nanwang Scien-tech regards talent as the key driver for corporate advancement. The Company has established policies for mid-to-senior-level managers. The curriculum focused on three core modules: Methodology for Managing
including the Training Management System the Performance Management Manual the Training Discipline Regulations Oneself Methodology for Managing Teams and Methodology for Engaging with Leadership aiming to systemati-
and the External Training Administration Guidelines to build a comprehensive and systematic training framework. cally enhance managers' human resource management capabilities and support their transition from specialized
Based on different career stages and job-specific requirements the Company implements training programs such as New management to comprehensive business leadership.Employee Orientation Management Trainee Program and Production Reserve Leadership Development Program. Addition-
ally the Company has established an internal certification trainer development mechanism. Trainers are selected through
41 422025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
During the reporting period Occupational Health and Safety
13348.52 9.47 Nanwang Scien-tech prioritizes safety management as a core component of its operations adhering to the principle of hours hours "safety first prevention-oriented and comprehensive governance". The Company strictly complies with relevant laws and
regulations including the Law of the People's Republic of China on Work Safety and has established internal management Total training hours Average training hours per employee systems such as the Occupational Health and Safety Management System and the Emergency Response Plan for Produc-
tion Safety Incidents of Fujian Nanwang Environment Protection Sci-tech Co. Ltd. These frameworks ensure the effective
1410 42.60 implementation of occupational health and safety initiatives safeguarding safe and civilized production practices while persons % promoting stable and sustained business development.
Total number of employees trained Percentage of employees receiving skills-related training
Safety production responsibility management
Key Performance The Company strictly implements the work safety responsibility system. The General Manager is designated as the primary
person responsible for enterprise work safety overseeing both decision-making and execution of safety management.Concurrently a safety management team was established with the General Manager serving as the Team Leader and
During the reporting period departments across the Company organized 153 training heads of various departments as members. The Environment Health and Safety Department (here in after referred to as
sessions focusing on personal development skill enhancement professional expertise and "EHS Department") was established as the dedicated management department to specifically implement the execution of
laws and regulations. safety policies risk control and daily supervision and inspection functions. Based on actual conditions and characteristics
of different positions the Company has formulated safety production responsibility systems for all departments person-
nel at all levels and job roles. Signing of safety production target management responsibility agreements has been imple-
mented from top to bottom with responsibilities refined down to specific positions and personnel. Regular assessments
Career development are conducted to evaluate the implementation of the safety responsibility system.The Company strictly follows the requirements of the ISO 45001 Occupational Health and Safety Management System
The Company is committed to building clear career progression pathways and a scientific management system. Based on conducting internal audits and external evaluations regularly to comprehensively review the system's suitability adequacy
the Performance Management Manual we have established a comprehensive performance evaluation framework cover- and effectiveness. For identified issues a closed-loop rectification mechanism is established achieving continuous improve-
ing all job roles grounded in seven core principles: fairness objectivity open communication differentiation regular- ment through cause analysis corrective actions and effectiveness verification ensuring that safety management aligns
ity developmental focus and job relevance. These principles have defined detailed evaluation methods scoring criteria with the evolving needs of employee career development.and implementation guidelines complemented by a formal performance appeal mechanism to ensure transparency and
impartiality throughout the assessment process. Annual performance results are systematically applied to compensation Additionally the Company sets annual safety targets based on actual business operations ensuring effective operation of
incentives career advancement decisions and personalized development recommendations. the management system through target breakdown process monitoring and responsibility implementation.For high-potential employees the Company has established dual career pathways in management and technical tracks.Key Performance
Through regular talent reviews and in-depth communication we dynamically assess their capability development and
role alignment and design personalized development plans to strengthen core talent pipeline development. For employ-
ees in technical roles a periodic skill assessment mechanism is implemented with evaluation outcomes serving as a key
basis for promotion decisions. During the reporting period the number of work-related fatalities at the Company was 0.The Company also supports diversified career pathways by opening internal job mobility channels. Employees may apply
for role transitions based on business needs personal development aspirations and capability alignment. Adjustments As of December 31 2025
are made after comprehensive evaluation enhancing role-person fit efficiency and organizational agility.Fujian factory has obtained ISO 45001 Occupational Health and Safety
Key Performance Management System certification.During the reporting period the percentage of employees who received regular performance
and career development evaluations was 5.20%.
43 442025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
2025 Safety Management Goals Key Performance
Category Targets Achievement During the reporting period the Company
identified and rectified 133 hazards achieving a 100% rectification completion rate;
*?Zero fatalities severe injuries or major responsibility accidents
Accident Control Achieved approved 42 high-risk operations with 100% on-site supervision coverage;
*?Zero occupational poisoning incidents or occupational disease cases
conducted qualification reviews for 12 contractors;
achieved a 100% testing compliance rate for occupational disease hazard factors.*?100% integrity rate of safety protection equipment and facilities
Safety Management Achieved
*?100% utilization rate for safety production funds and materials
Occupational health management
*?95% timely rectification rate for safety hazards
Occupational *?100% health examination coverage rate
Achieved In terms of occupational health management the Company regularly monitors job roles exposed to risks such as dust
Health *?100% implementation rate for occupational health protection noise and chemical toxins. It standardizes the distribution and supervision of employees' proper use of personal protective
facilities and safe operating procedures equipment organizes occupational health examinations and fully implements occupational health protection measures
in production positions. We conduct regular equipment safety inspections annually and establish a normalized inspection
mechanism. By integrating standardized operating procedures for control we effectively ensure the safe operation of our
*?100% coverage and pass rate for three-level safety education for equipment. Additionally the Company establishes and operates a safety risk hazard reporting and reward mechanism to
Training and new employees strengthen employees' occupational health and safety. The Company also prioritizes employees' mental health by providing
Achieved
Education *?100% certified training rate for personnel in "three key positions" corresponding psychological counseling and expert lectures to enhance the physical and mental well-being of its workforce.*?100% occupational health training coverage rate
Key Performance
During the reporting period the Company achieved a 100% participation rate in occupa-
Safety production risk management tional health examinations for employees with no new occupational disease cases identified.The Company actively promotes the construction of a preventive safety production system. It has established the Produc-
tion Safety Accident Emergency Plan and formed a safety production risk assessment group. Through hazard identifica-
tion hazard inspections and other measures the likelihood of accidents is reduced at the source.Hazard inspections are divided into basic management and on-site management. Basic management primarily checks
institutional compliance including workshop- and team-level safety training records personal protective equipment distri-
bution records and self-inspection and rectification records for hazards. On-site management follows an area-based grid
management system requiring at least one comprehensive weekly inspection of each responsible area covering fire safety
temporary electrical work workplace environment special equipment high-risk operations facility maintenance signage
and employee behavior. Additionally the Company has established a Hazard Inspection Reporting and Reward System
to encourage employees to promptly report safety issues enabling timely hazard elimination and ensuring workplace
safety. In 2025 one equipment safety inspection was conducted achieving a 100% coverage rate. Issues were identified
with workshop equipment and rotating components and corrective actions were completed for the relevant equipment.
45 462025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Safety training and culture Enhancing service quality
Nanwang Scien-tech systematically conducts safety production education and publicity activities committed to contin- The Company has established diversified communication and feedback channels supported by a comprehensive customer
uously enhancing employees' safety awareness and professional competence. The Company implements differentiated complaint handling procedure. Through efficient response and closed-loop management we maintain close collabora-
safety training programs delivering targeted education to employees in different positions with a focus on strengthening tion with customers solidifying long-term partnerships.the safety management capabilities of personnel in critical roles. It systematically advances the standardization and stand- To systematically assess the customer experience and drive continuous service improvement the Company conducted
ardized management of safety production training. a satisfaction survey targeting core and potential customers in 2025. The survey provided a comprehensive evaluation
All employees receive routine safety training covering topics such as occupational safety laws and regulations job-specific across 7 dimensions including pre-sales service sales support product quality and delivery performance with a specific
safety operating procedures heatstroke emergency response safety risk identification and management as well as fire focus on incorporating customer attention to sustainability needs. For items that did not meet standards in the survey the
safety and accident case studies. New employees are required to complete a systematic "three-level safety education" and Company conducted root cause analysis and formulated specific improvement action plans. By tracing issues and imple-
training program. Additionally specialized occupational health training is conducted for employees in positions exposed menting corrective measures we aim to systematically optimize service processes and support system further enhancing
to occupational hazards systematically improving their safety literacy and risk prevention capabilities. our capability for co-creating value with customers.Key Performance
Primary Customer Communication Channels
During the reporting period the Company
74 *?Company website *?Exhibitions forums and summits *?Business phoneconducted sessions of safety training for new employees achieving 100% coverage *?Customer visits *?Service hotline *?Information systems
of occupational health and safety education; *?New media platforms (e.g. *? WeChat QQ DingTalk *?Questionnaires
organized 4 emergency drills with 1391 employee participations. WeChat Official Account Douyin) *?Email
Shared Responsibility and Mutual Success
Nanwang Scien-tech is committed to integrating sustainable development across the entire value chain. We collaborate
with suppliers to advance the green transition assist customers in achieving their sustainable development goals imple-
ment environmental impact management throughout the product lifecycle and actively participate in the co-construc-
tion of the industry ecosystem. Through collaborative innovation and shared responsibility we aim to collectively build a
more resilient and sustainable future.Customer Responsibility
The Company consistently adheres to the core value of "Customer First" dedicated to building a customer-oriented excel-
lent service system. By developing and implementing internal management policies such as the Customer Satisfaction
Survey Control Procedure the Order Tracking Management Procedure and the Customer Return Handling Procedure we
continuously refine our customer collaboration mechanism enhancing service quality and customer satisfaction.
47 482025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Customer collaboration Product Liability
The Company has always placed customers at the core of its key stakeholders. Through regular communication and a Quality management
two-way feedback mechanism we gain a deep understanding of customer needs and expectations fostering close align-
ment between our services and customers' business objectives. The Company emphasizes building mutually beneficial The Company strictly adheres to the Law of the People's Republic of China on Product Quality and other relevant laws and
and trustworthy partnerships leveraging our professional capabilities to support customers in achieving their sustaina- regulations. The Company carries out comprehensive implementation of national quality standards including GB 4806.1-
ble development goals thereby forming a virtuous symbiotic ecosystem. 2016 National Food Safety Standard General Safety Requirements for Food Contact Materials and Products GB 4806.7-
2023 National Food Safety Standard General Food Contact Plastic Materials and Products GB 4806.8-2022 National Food
Safety Standard General Food Contact Paper and Paperboard Materials and Products GB 9685-2016 National Food Safety
Case: Nanwang Scien-tech Collaborates with Yum China to Advance the Standard General Standards for Use of Additives in Food Contact Materials and Products and GB 31603-2015 National Food
Transformation of Green Packaging Safety Standard General General Hygiene Specification for Production of Food Contact Materials and Products and has
established a product quality management system covering the entire business chain. Anchored in standardized manage-
ment and aligned with its four core product lines the Company has established an end-to-end quality management system
We have worked closely with Yum China in the field of sustainable packag- spanning from incoming material inspection and in-process control to finished product verification. To institutionalize and
ing providing comprehensive support for its green development strategy. streamline quality control the Company has developed and implemented a suite of standardized documents including
The collaboration focuses on three main directions: promoting the use of the Incoming Inspection Specification Raw Paper Quality Standard Adhesive Inspection Guidelines Process Inspection
eco-friendly materials and green printing processes advancing packaging Specification Finished Product Inspection Specification and Shipment Inspection Specification. These documents system-
circularity and reduction design and deepening supply chain synergy. This atically define operating procedures across incoming in-process and pre-shipment inspection stages.has effectively supported Yum China's integrated targets in environmental
Key Performance
social and governance (ESG) aspects. Joined the Yum China
Green Power Alliance As of December 31 2025
3 factories have obtained ISO 9001 Quality factory have obtained ISO Management System certification 1 22000 certification
Case: Nanwang Scien-tech Supports McDonald's Global Sustainability Goals
3 factories have obtained Supplier Ethical factories have obtained the BRCGS Global Data Exchange (SEDEX) certification 4 Standard for Packaging Materials certification.
We engaged in deep collaboration with McDonald's on its global
sustainability strategy. We developed waterproof paper bags The Company has established the Nanwang Scien-tech Testing Center constructing a comprehensive multi-dimensional
specifically for takeout utilized renewable raw materials to reduce quality assurance system based on CNAS standards. The center comprises four core functional modules: microbiological
carbon footprint and achieved packaging lightweighting and testing physical performance testing chemical analysis and customer restaurant simulation testing. Equipped with over
functionalization. Furthermore we obtained FSC paper certifica- 100 advanced instruments and continuously investing in proprietary self-developed testing devices the center significantly
tion and adopted clean printing processes along with fluorine- enhances its product quality control capabilities.free papers thereby supporting the client's global sustainability Microbiological Testing Area: Regular monitoring is conducted on raw materials production environments personnel
strategic objectives. hands and tools to strictly control hygiene indicators such as total bacterial count and coliforms thereby ensuring sanitary
Paper Bags Made from Renewable Materials safety throughout the production process;
Physical Performance Testing Area: Maintained under constant temperature and humidity conditions this area conducts
tests on key physical properties of paper—including burst strength tear resistance and tensile strength—in accordance
with International Organization for Standardization (ISO) Technical Association of the Pulp and Paper Industry (TAPPI)
and China National Standards (GB) ensuring the stability and reliability of both incoming materials and finished products;
Chemical Analysis Area: Utilizing high-precision equipment such as GC-MS and ICP-OES this area strictly quantifies harmful
substances including heavy metals formaldehyde and potential carcinogens like chloropropanol fully meeting the require-
ments of the GB4806 series of national food safety standards;
Customer Restaurant Simulation Testing Area: Through sealed bag delivery tests rain exposure tests and beverage filling
simulations the durability of products is validated proactively effectively guaranteeing their safety and reliability in
real-world usage scenarios.
49 502025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
The Company prioritizes the digital upgrade of quality management. Leveraging on the MES system we achieve real-time
collection and multi-dimensional analysis of in-process inspection data. The integrated information management platform Case: 2025 Labor Skills Competition
breaks down data silos between departments ensuring dynamic visibility and traceability of key quality control points.Finished product inspection data is deeply integrated with the ERP system enabling the automated generation and The Company held a labor skills competition themed "Showcasing Skills Upholding Craftsmanship Staying True
electronic archiving of certificates of analysis (COA) significantly enhancing the timeliness and accuracy of quality document to Our Original Aspiration". Centered on the corporate core values of "Professionalism and Efficiency" this compe-
management. Based on standardized processes within the digital system end-to-end closed-loop management capabili- tition featured eight contest categories: electromechanical skills product inspection skills packing skills forklift
ties from incoming inspection to process monitoring and final release have been effectively strengthened providing techni- operation skills and a company-wide knowledge contest among others. These categories comprehensively
cal support for the continuous optimization of the quality management system. covered key aspects of the production process testing not only individual skill proficiency but also highlighting
the power of teamwork.Furthermore the Company has established a rigorous source control mechanism for chemicals by formulating an internal
prohibited chemical list. We require suppliers to provide VOC test reports and compliance documentation for food-grade
materials thereby controlling product quality from the source. To address frequent anomalies occurring during the produc-
tion process the Company formed a dedicated Quality Control Circle (QCC). Through conducting internal quality audits and
participating in customer exchange activities the Company continuously optimizes its quality control model and incorpo-
rates advanced management practices from the industry.Quality culture development
Case: Case Study Seminar on Product Safety Culture
To further strengthen the construc-
tion of product safety management
system and deepen product safety
awareness among all employees R&D and innovation
the Company organized a case
study seminar on product safety The Company perseveres in integrating cutting-edge technological trends with customer needs and guiding innovation
culture in 2025 under the theme of with environmental protection principles as key directives committed to providing customers with optimal value."Fortifying Food Safety Defenses
Driving Organizational Transfor- Our R&D strategy is driven by both "customer demand" and "proactive foresight and reserve" ensuring rapid responsive-
mation". ness to market demands while focusing on the continuous accumulation of strategic technological reserves. We have estab-
lished a professional technical R&D team forming technological barriers in 14 core industry areas including automated
Using a simulation case provided by a customer as a starting point the seminar organized employees to system- handle attachment technology and paper bag anti-permeability technology. It has cumulatively obtained 113 domestic
atically discuss the key issues within the case. By integrating culture development system optimization and patent grants (including 16 invention patents) and five overseas patent grants. Regarding the innovation management
process innovation each group explored pathways to establish a long-term food safety prevention and control mechanism the Company has established the Green Innovation Proposal and Incentive Policy. Through diversified incen-
mechanism. During the discussions representatives from each group presented their analysis proposing construc- tives such as project bonuses and promotion points employees are encouraged to propose innovative solutions.tive solutions and improvement ideas focused on the root causes of problems.Key Performance
Over the past three years cumulative investment in research and innovation exceeded
RMB 90 million.
51 522025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Case: Waterproof Sealed Paper Bag Project List of Innovative Products
With the explosive growth of the global food delivery industry the functionality and environmental friendliness of
delivery packaging in rainy or snowy weather have gradually become industry pain points. Traditional paper bags Aluminum-coated Film Scratch-resistant Non-woven Bag
are prone to moisture damage and tearing in such conditions leading to a degraded user experience. Against this
backdrop the design of waterproof delivery paper bags emerged aiming to balance practical needs with environ- Adopts a composite structural design and functional coating process
mental responsibility while empowering brands for differentiated competition. Pain point addressed: mitigates issues such as susceptibility to scratching inadequate thermal insulation and
poor durability in cold chain transportation packaging
*?Withstanding 30-Minute Rain Test: The new water- Application scenarios: Cold chain distribution fresh food e-commerce
proof self-sealing paper bag adheres to a "Healthy
Hygienic Eco-friendly" design philosophy. It can
maintain high strength even after a 30-minute rain Anti-scratch Non-woven Bag
test effectively protecting the contents inside the bag. Through refined bag-making processes potential hazards associated with sharp edges are eliminated to achieve
*?Innovative Self-Sealing Design: The bag opening a safe non-scratching experience
features a self-adhesive strip facilitating easy sealing Pain point addressed: The issue of hands being easily scratched during the use of traditional non-woven fabric
and opening. This helps minimize rainwater ingress bags is resolved
and maintains the cleanliness and hygiene of foods. Application scenarios: Supermarkets and retail stores brand pop-up events gift packaging and community
*?Eco-friendly Materials: Made entirely from biodegrad- group buying
able paper materials eliminating white pollution.This product won the "Gold Award for Market Potential Development of the Year" at the WORLD PACKAGING Highly Water-resistant Thermosensitive Label
AWARDS 2025.Adopts a biodegradable paper substrate that is water-resistant moisture-resistant abrasion-resistant and
capable of withstanding extreme high and low temperatures
Pain point addressed: Resolves the issues of color fading physical damage and non-biodegradability associ-
ated with traditional thermal labels when exposed to high humidity low temperatures and friction
Application scenarios: Cold chain transportation fresh food distribution food processing and microwave
List of Innovative Products heating packaging
Dual-color Label
Waterproof Paper Bag
Adopting a dual-color layered design to distinguish fixed information from variable data thereby enhancing
High-strength waterproof coating self-adhesive seal eco-friendly materials information readability and food preparation efficiency
Pain point addressed: Solve the issue in food delivery scenarios where paper bags are prone to becoming soggy Pain point addressed: Resolves issues associated with traditional monochromatic labels including mixed infor-
and tearing in rainy or snowy weather mation content blackening under high temperatures or blurred coloration under low temperatures
Application scenarios: Take-out delivery Application scenarios: Food delivery services coffee shops chain stores and brand marketing campaigns
Express Paper Bag Bottomless Label
Made from recyclable biodegradable renewable materials Bottomless Label Adopting a single-layer self-adhesive structure without a liner offering high flexibility and
Pain point addressed: Paper-for-plastic substitution reducing and eliminating plastic use aligning with environ- convenient application
mental policies Pain point addressed: Points: Resolves issues associated with traditional labels caused by liners including
Application scenarios: E-commerce cross-border e-commerce supermarkets instant delivery material waste migration of hazardous substances and environmental pollution from liner disposal
Application scenarios: Food packaging food delivery fast-moving consumer goods (FMCG) and brand marketing
53 542025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
List of R&D and Innovation Honors for Nanwang Scien-tech in 2025 Intellectual property
2025 Top 100 Chinese Printing and Packaging Enterprises The Company has deeply integrated IP management into the corporate innovation and development strategy. Regard-
Awarding Organization: Printing Manager Magazine ing the governance structure we have established a management system led by the R&D Department with multi-depart-
ment collaboration. Through a monthly high-tech project meeting mechanism we coordinate progress tracking for R&D
and evaluation of IP portfolio strategies enabling the simultaneous advancement of R&D activities and outcome protec-
tion. In terms of policy formulation the Company has built a full-life-cycle management system by formulating specific
regulations such as the Intellectual Property Management System the Patent Application and Maintenance System and
Packaging Technology Innovation Award the Intellectual Property Agency Management System. These establish a standardized management pathway from innova-
Awarding Organization: Hongkong New Msuccess Media Group Limited tion to commercialization.At the implementation level the Company has established a dynamic monitoring mechanism. Specifically the IP team
conducts quarterly competitor patent analyses and has prepared the Briefings on Patent Risk Alerts to provide data support
for optimizing R&D directions. We also implement a quality control mechanism. Through monthly patent review meetings
Packaging Technology Innovation Award at the 2025 "Green China" Packaging technical market and legal experts jointly assess innovation proposals across three dimensions: technical novelty legal
Competition + European Packaging Competition stability and market applicability strictly controlling the quality of patent applications.Awarding Organization: Hongkong New Msuccess Media Group Limited
In supply chain management the Company clearly defines IP ownership and infringement liabilities of equipment and
material suppliers through contractual terms mitigating technology infringement risks at the source. Furthermore guided
by the Intellectual Property Agency Management System the Company standardizes external collaboration processes. It
regularly engages professional agencies to provide patent navigation services and technology hotspot analysis assisting
2025 China Packaging Container Exhibition Gold Award R&D teams in accurately identifying high-value technology fields.
Awarding Organization: Reed Exhibitions Limited
Key Performance
During the reporting period the Company was newly granted 21 new patents 5 invention
patents and 14 utility model patents.As of December 31 2025
the total number of cumulative valid patents the Company holds was 111 including
16 cumulative valid invention patents 83 cumulative valid utility model patents 113
cumulative domestic patent grants and 5 cumulative overseas patent grants.
55 562025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Supply Chain Responsibility five countries. By licensing its patents the Company supports the application of technology within the industry helping
upstream and downstream enterprises in the industrial chain enhance their innovation capabilities and promoting the
The Company strictly adheres to legal and regulatory requirements of the countries and regions in which it operates diffusion and practical application of green technologies across the sector.including the Bidding Law of the People's Republic of China and the Government Procurement Law of the People's Repub- Standards Development Participation
lic of China. We have formulated policies such as the Supplier Selection and Management Procedure and the Supplier
Code of Conduct setting out management requirements covering all stages from supplier eligibility assessment to exit
which continuously strengthens the standardized and systematic management of suppliers. On top of this the Company Industry Standard *?QB/T 4379-2019 Paper Shopping Bags
is committed to promoting the development of a sustainable supply chain extending environmental and social respon-
National Standard *?GB/T 27590-2022 Paper Cupsibility upstream.*?GB/T 44833—2024 Paper Straws (Including Paper Raw Material for Straws)
The Company has established a supplier risk management system. In accordance with the Supplier Selection and Manage-
ment Procedure suppliers are subject to annual categorized and graded management based on multidimensional indica- *?T/CNFIA 201-2020 Disposable Paper Straws for Food Contact
tors including quality qualification rate on-time delivery rate complaint rate food safety risks and brand reputation. We *?T/CTAPI 001-2022 General Requirements of Green Paper Packaging Products for Takeout
also develop differentiated audit strategies based on different risk levels. Precise categorization and dynamic control allow *?T/CNFIA 161-2022 Eco-Friendly Coated Paper Paperboard and Related Products for Food
the Company to effectively enhance the stability quality and compliance of the supply chain which may provide solid Contact
assurance for the Company's sustainable operations and product safety. *?T/HBFPIA 017-2023 Takeaway Non-Woven Environmentally Friendly Bags
To gain a deeper understanding of the sustainability performance of the supplier the Company conducts surveys via *?T/CNFIA 189-2024 Determination of Extractable Organic Fluorine Content in Food Contact
Group Standards
questionnaires or face-to-face communication focusing on the environmental social responsibility and upstream manage- Paper Cardboard and Paper Products Online Combustion-Ion Chromatography
ment practices of key suppliers. The Company pays particular attention to critical aspects such as papermaking wastewater *?T/CNFIA 190-2024 Determination of Total Organic Fluorine Content in Food Contact Paper
treatment. As of the end of 2025 we have embarked on such research initiative for certain core suppliers. In routine commu- Cardboard and Paper Products - Ion Chromatography
nications with suppliers the Company consciously guides their attention towards carbon reduction topics such as energy *?T/CNFIA 191-2024 Determination of Total Fluorine Content in Food Contact Paper Cardboard
consumption planning green electricity usage and packaging material recycling promoting the dissemination of carbon and Paper Products Online Combustion-Ion Chromatography Method
reduction concepts. Additionally the Company continuously monitors supplier practices in areas such as working hours *?T/CSTM 01169-2024 Evaluation of Fluorine-Free Grease-Proof Plant-Fiber Base Materials for
management use of environmentally friendly materials and labor protection to ensure that suppliers balance economic Food Contact
benefits with employee rights and environmental protection.Looking ahead the Company will based on existing work continue to reinforce sustainable supply chain management List of Industry Associations Joined
striving to translate conceptual consensus into concrete actions and jointly build a green responsible and resilient supply
chain system with its suppliers. Printing Technology Association of China (PTAC)
Industry Collaboration Member Unit of the Collaborative (Working) Group for the Tracking and Evaluation of National Food Safety Standards
on Testing Methods
The Company is committed to promoting green transformation and technological upgrading of the industry. While achieving Member Unit of the Sub-Technical Committee for Packaging Paper and Paperboard National Technical Committee
its own sustainable development it actively undertakes the responsibility of co-building the industrial ecosystem. Focusing for Paper Industry Standardization
on areas such as the application of green materials and the development of low-carbon processes the Company has led
or participated in the drafting and revision of multiple industry standards providing foundational support for construct- Member Unit of the National Technical Committee for Standardization of Food Contact Materials and Articles
ing a technologically advanced and resource-efficient industrial system.Member Unit of the Paper-based Green Packaging Materials and Products Professional Committee China Technical
In terms of external collaboration the Company has established cooperative R&D relationships with institutions such as Association of Paper Industry
Shaanxi University of Science & Technology and Beijing Institute of Graphic Communication. In partnership with Beijing
Institute of Graphic Communication it conducted a carbon footprint study on representative products quantifying and Standing Committee Member Unit of the Environmental Protection Paper Industry Professional Committee China
verifying the low-carbon advantages of the water-based flexographic printing process it employs. Through these efficient Chemical Industry Information Association
industry-academia-research collaborations the Company has strengthened its green manufacturing competitiveness. Council Member Unit of the Fujian Provincial Quality Management Association
In terms of sharing technological achievements the Company presses ahead with the global deployment of its core technol-
ogies via the Patent Cooperation Treaty (PCT) international patent application system. Related technological achievements Council Member Unit of the Fujian Brand Promotion Association
have entered the patent examination process in eight countries through the PCT route and have obtained patent grants in
57 582025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Giving Back to Society Charitable donations
We made donations to Hui'an County Love Assistance Public Welfare and Anxin Assistance Public Welfare to support their
Nanwang Scien-tech firmly believes that actively giving back to society is a core responsibility of corporate citizenship. We continued work in helping those in distress. At the same time we sponsor a disability art troupe to support persons with
are committed to growing together with the communities we operate in and creating shared value through public welfare disabilities in realizing their self-worth and social integration through art. In terms of regional collaboration we responded
and philanthropic activities striving to translate charitable actions into tangible social benefits and contributing to build- to the call by participating in donations for the "Fujian-Ningxia Collaboration" initiative contributing to coordinated devel-
ing a warmer more sustainable and better society. opment across regions. The cumulative amount of the aforementioned donations reached RMB 200000 .Key Performance
Supporting the development of local culture and sports
During the reporting period We sponsored the Tongcheng City Cultural and Tourism Project to support Anhui Yifeng Sports Development Co. Ltd. in
the cumulative investment in public welfare activities amounted to RMB 298218.5. organizing sports events; provided sponsorship to Anhui Clown Egg Culture Media Co. Ltd. to promote the development of
the local cultural and creative industry; and simultaneously offered financial support for the Heshan Dragon Boat Culture
Festival to assist in the inheritance and dissemination of traditional folk culture. The cumulative amount of cultural sponsor-
The Company continues to carry out public ship reached RMB 60000 effectively contributing to the prosperity of local culture.welfare projects for community care and actively
fulfills its corporate social responsibility. During
the Spring Festival of 2025 we distributed a conso-
lation allowance of RMB 2000 to residents of
Liantang Village Hui'an County Fujian Province
to support improvements in their holiday living
standards. During the Double Ninth Festival we
conducted another elderly care outreach activ-
ity providing dedicated care services to 30 senior
residents of Liantang Village.Visiting elderly residents
Philanthropy
Continuously investing in the education sector
The Company continues to support local education by providing scholarships and funding for school construction to help
improve teaching environments. In 2025 we provided scholarships to Liaoyuan Primary School. During the Children's Day
period we distributed a total of RMB 20000 in holiday allowances to Liaoyuan Primary School and Huidong Experimental
Primary School covering 200 students.Social Welfare Awards
596004
Resilient Governance
Robust Operations
Material Topics Addressed
ESG Governance | Business Ethics | Information Security
Our Concept
Nanwang Scien-tech adheres to the principles of compliance integrity and robust operations. We continuously enhance
our corporate governance framework uphold ethical business practices and strengthen the scientific rigor effectiveness Responded SDGs
and adaptability of governance systems to build a resilient foundation for sustainable development.2025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Corporate Governance Business Ethics
Nanwang Scien-tech strictly complies with laws regulations and normative documents including the Company Law of the Nanwang Scien-tech strictly complies with laws and regulations including the Anti-Monopoly Law of the People's Repub-
People's Republic of China the Securities Law of the People's Republic of China the Rules Governing the Listing of Stocks lic of China the Anti-Unfair Competition Law of the People's Republic of China and the Anti-Money Laundering Law of the
on the ChiNext Market of Shenzhen Stock Exchange the Self-Regulatory Guidelines No. 2 for Companies Listed on Shenzhen People's Republic of China. The Company has formulated internal regulations such as the Employee Handbook to clarify
Stock Exchange -Standardized Operation of Companies Listed on ChiNext Market and the Guidelines for Articles of Associ- requirements for ethical conduct establish an anti-fraud mechanism integrate business ethics standards into operational
ation of Listed Companies issued by the China Securities Regulatory Commission. The Company continuously standardizes processes and implement dynamic supervision over high-risk areas such as procurement and sales through internal audits
its operations and strives to enhance corporate governance standards to ensure compliance and stability in operations. thereby strengthening employee behavioral compliance.The Company has established a governance structure comprising the shareholders' meeting Board of Directors and
management team which are independent from and supervise one another. The Articles of Association and other detailed Business Ethics Governance
governance rules have been formulated to clarify the scope of authority responsibilities and procedural workflows at each
governance level standardizing corporate decision-making and operational oversight. During the reporting period the The Company continues to improve its anti-corruption governance system. The Chairman serves as the highest decision-
shareholders' meeting Board of Directors Board of Supervisors and management team all operated strictly in accord- maker for business ethics matters and oversees anti-corruption governance comprehensively. The internal audit depart-
ance with regulatory requirements and internal policies with no violations of laws or regulations observed. The Board of ment reports directly to the Chairman ensuring independent decision-making and efficient response to major risk matters.Directors has established specialized committees including the Strategy Committee Nomination Committee Compensa- The Board's Audit Committee directly supervises the implementation of anti-corruption systems establishing a top-down
tion and Evaluation Committee and Audit Committee. Each specialized committee is accountable to the Board of Direc- compliance management structure.tors provides advisory opinions and recommendations on major management matters oversees the implementation of The Company has established a periodic audit mechanism covering all business units and subsidiaries. An annual compre-
resolutions and ensures the effectiveness of Board operations. hensive audit plan is developed and strictly implemented to ensure that each operating entity undergoes at least one
The Company emphasizes the diversity of Board composition. When nominating new directors multiple factors are consid- systematic audit assessment per year. For high-risk areas such as procurement and sales a dynamic enhancement mecha-
ered including gender age professional experience and cultural and educational backgrounds to ensure the scientific nism for specialized audit frequency is implemented to strengthen risk prevention and control through penetration audits
rigor and effectiveness of Board decisions. As of the end of the reporting period the Board of Directors comprised a total on key operations.of 7 members including 4 non-independent directors and 3 independent directors and independent directors accounted At the audit execution level the Company adopts a collaborative model combining internal audits with external profes-
for 43%. sional audits. The internal audit team is responsible for routine inspections and special audits focusing on verifying the
implementation of anti-fraud systems compliance with conflict-of-interest declarations and the effectiveness of reporting
channels. Additionally the Company periodically engages independent third-party accounting firms or compliance consult-
ants to conduct professional evaluations of critical areas such as internal controls over financial reporting and the opera-
tion of anti-fraud systems ensuring the independence and professionalism of audit work. During the reporting period no
4 Members 3 Members incidents of corruption or violations of business ethics occurred within the Company.
Non-independent Directors Independent Directors
1 Member 43 %
Employee Representative Director Percentage of Independent
(Non-Independent) Directors on the Board
63 642025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Whistleblowing Management Development of an Integrity Culture
The Company is committed to establishing a robust whistleblowing and investigation mechanism and has formulated the Case: Specialized Training on Legal Education
Whistleblowing Management Policy applicable to all employees of the Company and its subsidiaries providing a clear insti-
tutional basis for related work. To ensure the effectiveness and security of whistleblowing channels the Company has estab-
lished diversified reporting methods including a dedicated email address physical whistleblowing mailboxes located in The Company collaborated with local public security authorities to conduct a legal education campaign themed
office premises and in-person reporting options selected by the whistleblower all of which are managed by the Chairman. "Promoting Rule of Law into Enterprises". Through legal knowledge seminars the campaign systematically inter-
preted laws and regulations closely related to business operations and employee conduct combined with analy-
The Company places great emphasis on the protection of whistleblowers and commits to strictly maintaining the confiden- sis of real-life cases to help employees identify legal risks such as embezzlement in office and commercial bribery.tiality of their personal information. The whistleblowing mailbox is exclusively managed by the Chairman and the whistle- This specialized initiative effectively enhanced employees' compliance awareness and commitment to integrity
blowing email utilizes an external server to ensure the confidentiality of information transmission. Any individual reporting self-discipline while providing solid support for building a transparent and fair business environment.to the designated department is protected by the Company's policies and laws regarding personal rights property rights
employment rights and other legitimate interests.In handling whistleblowing investigations the Company implements a recusal system. Whistleblowers have the right to
request the recusal of investigators who have a conflict of interest or other connections to the reported matter ensuring
the fairness and independence of the investigation process.Whistleblowing Handling Process
*?The Whistleblowing Management Department reviews registers and promptly forwards written materials submit-
ted by whistleblowers to the Audit Department for handling. For reports involving significant urgent or clearly
defined clues the Company will prioritize processing. Personnel unrelated to the case are prohibited from inquir-
ing about or accessing information regarding the whistleblower.*?Within seven working days of receiving a report the Audit Department will conduct an initial review and verifi-
cation to determine whether to initiate an investigation. If no investigation is initiated the whistleblower will be
informed of the decision and the reasons. The whistleblower has the right to request reconsideration or file a
report with a higher-level supervisor.*?After completing the necessary investigation procedures the Audit Department will prepare an investigation
report based on verified facts and submit it to the Chairman.*?For cases confirmed to be true and involving violations of the Criminal Law of the People's Republic of China the
Company shall refer the matter to the public security authorities for handling.*?Within one month after the conclusion of an investigation the Audit Department will inform the whistleblower in
writing of the handling and results of the case.
65 662025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Information Security
Information security is the cornerstone of the Company's stable operations and the foundation of customer trust. Nanwang customer privacy and data security thereby fortifying the Company's digital operational security defenses.Scien-tech places great emphasis on information security management continuously improving its network and informa-
In terms of technical safeguards the Company engages third-party security agencies to conduct vulnerability scanning
tion security management systems strengthening protective measures and effectively safeguarding the security of inter-
and penetration testing to identify and rectify potential security gaps. We also commissions independent audit agencies
nal and customer data.to perform compliance verification of its IT infrastructure and management systems ensuring that information security
The Company continuously improves its network and information security management system by integrating institu- practices align with industry standards and regulatory requirements.tional standardization with technical prevention measures to ensure the security of Company information. In terms of insti-
Regarding security incident management the Company has established internal protocols such as the Emergency Response
tutional development we have formulated and implemented internal regulations covering the entire business process Manual for Cyberattacks the Information Disaster Recovery Plan and the Business Continuity Plan. It has also implemented
including the Information System Access Security Management Regulations the Computer Room Management Regula-
an information security incident reporting mechanism requiring all employees to strictly follow established procedures to
tions the Information System Permission Approval Regulations the Monitoring Management Regulations the Data Backup
report suspicious security incidents promptly ensuring timely risk mitigation and closed-loop management.Management Regulations and the Information Security Reporting Regulations. These systematically standardize opera-
tional protocols for critical areas such as customer information management access control code development and data Furthermore the Company employs an online and offline integrated training system regularly organizing specialized infor-
backup maintenance and . also clarify security responsibilities at all organizational levels establishing a clear governance mation security courses and drills while disseminating risk warning cases to all employees. This continuous effort strength-
framework for cybersecurity. ens staff awareness and emergency response capabilities. During the reporting period the Company did not experience
any data breaches or system intrusions.The Company has implemented physical isolation between internal and external networks reinforcing external network
defenses through firewalls and deploying an information leakage prevention system is implemented to identify and control
data outbound channels. Additionally mandatory encryption is enforced for files on computers used by core R&D person-
nel to prevent unauthorized external access. For permission management sensitive data in systems such as ERP requires a
tiered approval mechanism strictly controlling access rights to effectively reduce information leakage risks and safeguard
67 682025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Appendix
Appendix I. Sustainability Key Performance Metrics Table
Metrics Unit 2025 Metrics Unit 2025
Environmental Key Performance Metrics1 COD Emissions kg 4051.29
Volatile Organic Compounds (VOCs) Emissions Tonnes 11.57 Ammonia Nitrogen Emissions kg 238.42
Nitrogen Oxide (NOx)2 Emissions Tonnes 0.31 Total Water Withdrawal Tonnes 153942.00
Sulfur Oxides (SOx) Emissions Tonnes 0.08 Total Energy Consumption3 kWh 117953469.07
Total Hazardous Waste Generated Tonnes 25.99 Total Fossil Fuel Consumption kWh 2146955.23
Hazardous Waste Recycled Tonnes 6.39 Gasoline Consumption kWh 173115.78
Hazardous Waste Disposed Tonnes 19.69 Diesel Consumption kWh 217887.20
Total Non-hazardous Waste Generated Tonnes 11469.68 Natural Gas Consumption kWh 1755952.25
Total Non-hazardous Waste Recycled Tonnes 10734.92 Indirect Energy Consumption kWh 115806513.85
Total Non-hazardous Waste Disposed Tonnes 734.76 Grid Electricity Consumption kWh 108778793.85
Total Production Wastewater Tonnes 19485.29 Clean Energy Consumption kWh 7027720.00
1_The data covers 6 factories that operated normally during the fiscal year 2025. 3_Calculation was performed in accordance with GB/T 2589-2020 General Principles for Calculation of Comprehensive Energy Consump-
2_Emission data for NOx and SOx cover emissions generated during the manufacturing process. tion issued by the State Administration for Market Regulation and the Standardization Administration of China.
69 702025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Metrics Unit 2025 Metrics Unit 2025
Tonne of
Scope 1 GHG Emissions4 460.63 Full-time Employees Person 2887
CO2 equivalent
Tonne of
Scope 2 GHG Emissions5 (location-based approach) 57718.03 Number of Employees Aged 30 and below Person 925
CO2 equivalent
Tonne of
Scope 2 GHG Emissions (market-based approach) 66311.55 Number of Employees Aged 31-40 Person 968
CO2 equivalent
GHG Emissions Generated from Own Operations Tonne of Number of Employees Aged 41-50 Person 648
58178.66
(location-based approach) CO2 equivalent
Number of Employees Aged 50 and above Person 346
GHG Emissions Generated from Own Operations Tonne of
66772.19
(market-based approach) CO2 equivalent Number of Employees in Chinese Mainland Person 2596
Social Key Performance Metrics
Number of Employees in Overseas Person 291
2025 Working Hours Hour 7217100
Number of Employees Working Overseas6 Person 20
Total Number of Employees Person 2887 Total Number of Employees Trained Person 1410
Number of Employees with Disabilities Person 9 Percentage of Employees Received Regular Perfor-
%5.2
mance and Career Development Assessments
Male Person 1726
Percentage of Employees Who Received Skills-re-
%42.6
lated Training
Female Person 1161
Total Trained Hours Hour 13348.52
Proportion of Female Employees % 40.2
Average Training Hours per Employee Hour 9.47
4_Scope 1 emissions encompass combustion emissions from fossil fuels such as gasoline diesel and natural gas utilized in production
and operations. The calculation methodology and emission factors reference the Guidelines for Accounting and Reporting of Greenhouse Number of Work Injury Case 40
Gas Emissions by Enterprises in Other Industrial Sectors (Trial) issued by the National Development and Reform Commission and the
IPCC 2006 National Greenhouse Gas Inventories Guidelines; the Global Warming Potential (GWP) values for greenhouse gases refer to the
IPCC Sixth Assessment Report. Lost Days due to Work Injury Day 877
5_Scope 2 emissions encompass greenhouse gas emissions resulting from indirect energy sources such as purchased electricity and heat.
The 2025 electricity emission factor references Announcement No. 47 of 2025 issued by the Ministry of Ecology and Environment titled
Announcement on the Release of 2023 Electricity Carbon Dioxide Emission Factors. 6_"Overseas employees" refers to employees whose work location differs from their country or region of nationality.
71 722025 Sustainability Report About This Executive Getting to Know Nanwang's Fostering a Green Collaboration for Resilient Govern- Appendix
Report Message Nanwan Sustainable Circular Economy Win-Win Outcomes ance Robust
Development Pioneering Low- Co-Creation of Operations
carbon Initiatives Value
Appendix II. Shenzhen Stock Exchange Sustainability Disclosure Index
Disclosure Corresponding
Dimensions No. Corresponding Chapter Disclosure Corresponding
Requirement Clauses Dimensions No. Corresponding ChapterRequirement Clauses
Addressing Climate Response to Climate Change
1 Article 21-28 Ethics in Science
Change and Energy Management 12 Article 43 Not Applicableand Technology
Pollution Prevention and
2 Pollutants Emission Article 30 Supply Chain Shared Responsibility and
Ecological Protection 13 Article 45Security Mutual Success
Pollution Prevention and
3 Waste Management Article 31
Ecological Protection Fair Treatment of 14 Article 46 Not Applicable
SMEs
Ecosystem and
Pollution Prevention and
4 Biodiversity Article 32 Social Products and
Environmental Ecological Protection Shared Responsibility and
Protection 15 Services Safety and Article 47
Mutual Success
Quality
Environmen-
Pollution Prevention and
5 tal Compliance Article 33
Ecological Protection Data Security and
Management 16 Customer Privacy Article 48 Information Security
Protection
Response to Climate Change
6 Energy Utilization Article 35
and Energy Management
17 Employees Article 50 People-Centric Approach
Water Resource Resource Utilization and Circu-
7 Article 36
Management lar Economy
Sustainable Development
18 Due Diligence Article 52
Management
Resource Utilization and Circu-
8 Circular Economy Article 37
lar Economy
Stakeholder Sustainable Development
19 Article 53
Sustainabil- Communication Management
9 Rural Revitalization Article 39 Giving Back to Society ity-related
Social Governance
Mechanisms Anti-Bribery and 20 Article 55 Business Ethics
10 Social Contribution Article 40 Giving Back to Society Anti-Corruption
Innovation-Driven Shared Responsibility and Anti-Unfair Compe-
11 Article 42 21 Article 56 Business Ethics
Development Mutual Success tition
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